Anthropic's Claude Code Gains Traction

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New: I spoke with the head of Claude Code, Boris Cherny, about how the viral AI coding tool is reshaping Anthropic. The buzz around Claude Code has reached a fever pitch recently, but some developers say AI coding products in general are reaching an inflection point. A few years ago, AI coding tools basically amounted to autocomplete, suggesting lines of code after developers started typing. Now, the space looks completely different. Developers can spin up AI agents from their phone that will spend hours coding up a feature. Just how good are these tools? Well, engineers inside of Anthropic seems to be using Claude Code for almost everything, and its business is growing like wildfire. - Claude Code made up ~12% of Anthropic's ARR by the end of last year, WIRED has learned. The product soared past $1 billion in ARR, by at least $100 million, in December, and could play a significant role in the company's revenue growth moving forward. - Cherny says nearly everyone at Anthropic, even its sales team, is using the agent for almost everything. That said, competition in AI coding is fierce. Cursor is at least as large as Claude Code, in terms of revenue. OpenAI and Google are hot on their tails. Definitely a space to watch in 2026. Read more in my newsletter, Model Behavior. https://lnkd.in/gCUzcjd2

It's a great tool, but I think the hype is snoozing on Codex pretty hard. I don't think Claude has a clear lead in coding to be honest. The benchmarks tend to agree with that too. Both tools you can pretty much spin up on a batch of new features, and they are going to come up with some pretty competent code.

I got excited reading this post… A lot of competing teams and many advancements in a short while… while it feels like a shortfall in the CEO’s predictions, the gains are massive… in a year’s time we might not be needed for coding any longer… teams may move towards quality control. OpenAI seems to have taken a little dip, but I believe they also got interesting stuff this year.

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Also, you can use Claude Code as just the "user interface" and swap out the underlying LLM for an open, free model like GLM 4.7, which is strong at coding. Most of what Claude Code users pay Anthropic is for usage of the underlying Anthropic LLMs. It's possible Anthropic will see this as a "loophole that needs to be closed", but for now it is wide open.

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The shift from autocomplete to autonomous agents spending hours coding features is remarkable, but it raises a critical question: as AI writes more of our code, how are teams validating that what gets shipped actually works as intended? The testing and quality assurance layer seems like the next frontier that needs to evolve alongside these tools.

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Coding speed is no longer the bottleneck. What matters now are SDD tools that formalize intent, manage specs, and govern outcomes — not just generate code.

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Shocked me to learn Claude Code wasn't a flagship product from day 1. It should have been obvious to anyone with basic understanding of LLM/Transformers that that was the best (only?) use case tailor made for them. We won't fully understanding how damaging the "AGI" cult thinking was to progress for a while...

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Good read. ChatGPT was the 1.0 for real consumer AI productivity gains. AI agents like Claude Code, with full file structure access and context, are opening the next generation of productivity gains. The impact is already real in coding, and other non-tech sectors are next.

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Really impressed with Claude Code’s CLI. After 40 years on the command line, its workflow feels intuitive and speeds up my day-to-day development. The PLAN mode is especially rewarding and fits well with my Agile background.

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When Dario said that 90% of code will be written by AI "in twelve months" he wasn't that far off as it seems.

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